EX-99.1 2 v56451exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(MAIER & COMPANY LOGO)
     
    NEWS RELEASE
     
CONTACT:
  Gary S. Maier
 
  Maier & Company, Inc.
 
  (310) 442-9852
MOTORCAR PARTS OF AMERICA REPORTS FISCAL 2010
FOURTH QUARTER/YEAR-END RESULTS
—Sales Climb 29 Percent for Quarter; Net Income Up Sharply For Year —
     LOS ANGELES, CA — June 14, 2010 — Motorcar Parts of America, Inc. (NasdaqGM: MPAA) today reported strong results for its year ended March 31, 2010, reflecting record fourth quarter and full-year sales and a significant jump in net income for fiscal 2010.
     Net sales for the fiscal 2010 fourth quarter were $38.6 million, compared with $29.9 million for the same period last year.
     Gross profit for the fiscal 2010 fourth quarter was $12.5 million (or 32% gross margin), compared with $6.0 million (or 20% gross margin) for the same period a year ago.
     Operating income for the fiscal fourth quarter climbed to $4.8 million, from an operating loss of $680,000 in the same period a year ago.
     Net income for the fiscal 2010 fourth quarter was $2.9 million, or $0.24 per diluted share, compared with a net loss of $1.2 million, or $0.10 per share, for the comparable period a year earlier.
     Net sales for fiscal 2010 climbed 9.2 percent to a record $147.2 million, compared with $134.9 million a year ago. Gross profit for fiscal 2010 was $41.3 million, compared with $39.5 million a year earlier, with a gross margin of 28 percent compared with 29 percent in fiscal 2009.
     Operating income for fiscal 2010 was $18.3 million, compared with $10.6 million a year earlier.
     Net income for fiscal 2010 climbed to $9.6 million, or $0.80 per diluted share, compared with $3.9 million, or $0.32 per diluted share, a year ago.
     “Our record sales for fiscal 2010 reflect our ability to build strong long-term relationships with leading automotive retailers and the professional market,” said Selwyn Joffe, chairman, president and chief executive officer of Motorcar Parts.
     Joffe noted that “our performance for the quarter validates our belief that as we continue to grow market share, operating performance is enhanced with very little incremental expenditure. As we enter a new fiscal year, operating leverage and increased usage of available production capacity
Tribecca Plaza 12233 West Olympic Boulevard Suite 258 Los Angeles, California 90064
TELEPHONE 310.442.9852
FACSIMILE 310.442.9855
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Motorcar Parts of America, Inc.
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continue to be important strategic components of the company’s year-over-year growth plans — supported by organic sales increases and acquisitions at appropriate valuations,” Joffe added.
Teleconference and Web Cast
     Selwyn Joffe, chairman, president and chief executive officer, and David Lee, chief financial officer, will host an investor conference call today at 10:00 a.m. Pacific Time to discuss the company’s financial results and operations for fiscal 2010. The call will be open to all interested investors either through a live audio Web broadcast at www.motorcarparts.com or live by calling (877)-776-4016 (domestic) or (973)-638-3231 (international). For those who are not available to listen to the live broadcast, the call will be archived for seven days on Motorcar Parts of America’s website. A telephone playback of the conference call will also be available from approximately 1:00 p.m. Pacific Time today through 8:59 p.m. Pacific Time on Monday, June 21, 2010 by calling (800)-642-1687 (domestic) or (706)-645-9291 (international) and using access code: 75655489.
About Motorcar Parts of America
     Motorcar Parts of America, Inc. is a remanufacturer of alternators and starters utilized in imported and domestic passenger vehicles, light trucks and heavy duty applications. Its products are sold to automotive retail outlets and the professional repair market throughout the United States and Canada, with remanufacturing facilities located in California, Mexico and Malaysia, and administrative offices located in California, Tennessee, Mexico, Singapore and Malaysia. Additional information is available at www.motorcarparts.com.
     The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements. The statements contained in this press release that are not historical facts are forward-looking statements based on the company’s current expectations and beliefs concerning future developments and their potential effects on the company. These forward-looking statements involve significant risks and uncertainties (some of which are beyond the control of the company) and are subject to change based upon various factors. Reference is also made to the Risk Factors set forth in the company’s Form 10-K Annual Report filed with the Securities and Exchange Commission (SEC) in June 2010 and in its Form 10-Qs filed with the SEC thereafter for additional risks and uncertainties facing the company. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as the result of new information, future events or otherwise.
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MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
                                 
    Three Months Ended     Year Ended  
    March 31,     March 31,  
    2010     2009     2010     2009  
    (Unaudited)     (Unaudited)                  
Net sales
  $ 38,616,000     $ 29,922,000     $ 147,225,000     $ 134,866,000  
Cost of goods sold
    26,153,000       23,891,000       105,898,000       95,319,000  
 
                       
Gross profit
    12,463,000       6,031,000       41,327,000       39,547,000  
Operating expenses:
                               
General and administrative
    5,614,000       4,845,000       15,580,000       19,479,000  
Sales and marketing
    1,664,000       1,331,000       6,019,000       5,242,000  
Research and development
    398,000       435,000       1,421,000       1,993,000  
Impairment of goodwill
          100,000             2,191,000  
 
                       
Total operating expenses
    7,676,000       6,711,000       23,020,000       28,905,000  
 
                       
Operating income (loss)
    4,787,000       (680,000 )     18,307,000       10,642,000  
Other expense (income):
                               
Gain on acquisition
                (1,331,000 )      
Interest expense
    964,000       1,027,000       4,710,000       4,215,000  
Interest income
                      (19,000 )
 
                       
Income (loss) before income tax expense (benefit)
    3,823,000       (1,707,000 )     14,928,000       6,446,000  
Income tax expense (benefit)
    952,000       (526,000 )     5,282,000       2,589,000  
 
                       
Net income (loss)
  $ 2,871,000     $ (1,181,000 )   $ 9,646,000     $ 3,857,000  
 
                       
Basic net income (loss) per share
  $ 0.24     $ (0.10 )   $ 0.80     $ 0.32  
 
                       
Diluted net income (loss) per share
  $ 0.24     $ (0.10 )   $ 0.80     $ 0.32  
 
                       
Weighted average number of shares outstanding:
                               
Basic
    12,023,688       11,962,021       11,988,692       11,995,622  
 
                       
Diluted
    12,156,354       11,962,021       12,116,615       12,086,126  
 
                       

 


 

MOTORCAR PARTS OF AMERICA, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
March 31,
                 
    2010     2009  
ASSETS
               
Current assets:
               
Cash
  $ 1,210,000     $ 452,000  
Short-term investments
    451,000       335,000  
Accounts receivable — net
          11,121,000  
Inventory— net
    31,547,000       27,923,000  
Inventory unreturned
    3,924,000       4,708,000  
Deferred income taxes
    8,391,000       8,277,000  
Prepaid expenses and other current assets
    2,735,000       1,355,000  
 
           
Total current assets
    48,258,000       54,171,000  
Plant and equipment — net
    12,693,000       13,997,000  
Long-term core inventory
    67,957,000       62,821,000  
Long-term core inventory deposit
    25,768,000       24,451,000  
Long-term deferred income taxes
    951,000       989,000  
Intangible assets — net
    6,304,000       2,564,000  
Other assets
    1,549,000       595,000  
 
           
TOTAL ASSETS
  $ 163,480,000     $ 159,588,000  
 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Current liabilities:
               
Accounts payable
  $ 31,603,000     $ 24,507,000  
Accrued liabilities
    3,764,000       1,451,000  
Accrued salaries and wages
    3,590,000       3,162,000  
Accrued workers’ compensation claims
    1,574,000       1,895,000  
Income tax payable
    678,000       1,158,000  
Note payable
          722,000  
Revolving loan
          21,600,000  
Other current liabilities
    697,000       1,624,000  
Current portion of term loan
    2,000,000        
Current portion of capital lease obligations
    953,000       1,621,000  
 
           
Total current liabilities
    44,859,000       57,740,000  
Term loan, less current portion
    7,500,000        
Deferred core revenue
    6,061,000       5,934,000  
Deferred gain on sale-leaseback
    319,000       843,000  
Other liabilities
    676,000       587,000  
Capital lease obligations, less current portion
    445,000       1,401,000  
 
           
Total liabilities
    59,860,000       66,505,000  
Commitments and contingencies
               
Shareholders’ equity:
               
Preferred stock; par value $.01 per share, 5,000,000 shares authorized; none issued
           
Series A junior participating preferred stock; par value $.01 per share, 20,000 shares authorized; none issued
           
Common stock; par value $.01 per share, 20,000,000 shares authorized; 12,026,021 and 11,962,021 shares issued and outstanding at March 31, 2010 and 2009, respectively
    120,000       120,000  
Additional paid-in capital
    92,792,000       92,459,000  
Additional paid-in capital-warrant
    1,879,000       1,879,000  
Accumulated other comprehensive loss
    (1,426,000 )     (1,984,000 )
Retained earnings
    10,255,000       609,000  
 
           
Total shareholders’ equity
    103,620,000       93,083,000  
 
           
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  $ 163,480,000     $ 159,588,000